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Geox Q1 net sales improve 4.7 percent

By Prachi Singh

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Management |REPORT

Geox consolidated net sales for the first quarter of 2016 increased by 4.7 percent or 5 percent at constant forex to 294.3 million euros (334.7 million dollars).

Commenting on the company’s performace, Mario Moretti Polegato, Chairman and Founder of Geox, said, “I am satisfied with the revenues generated by Geox Group in the first quarter. These results, achieved amid a challenging industry environment, are confirmation of the effectiveness of our strategic development plan and of our sales and marketing initiatives. With respect to the second half of the year, the orders already collected by the multi-brand channel for the 2016 Fall/Winter season, show a solid growth of 14 percent, thanks to excellent overall performance across all geographical areas, channels, categories and product lines.”

Q1 sales improve across categories

Footwear sales, which accounted for about 90 percent of consolidated sales, amounting to 265.2 million euros (301.6 million dollars), increased 4.9 percent or 5.1 percent at constant exchange compared to first quarter of 2015. Apparel sales, which represented 10 percent of consolidated sales, equal to 29.2 million euros (33.2 million dollars), compared to 28.2 million euros (32 million dollars) of the first quarter 2015, representing 3.2 percent or 3.8 percent rise at constant forex.

Sales in Italy, which accounted for 34 percent of sales, amounted to 99.7 million euros (113.4 million dollars) broadly aligned with first quarter 2015 sales, driven by the closure of some monobrand stores, which was partially offset by the wholesale growth of 7 percent and the like for like performance of retail channel including DOS and franchising of 3 percent. Sales in Europe, which accounted for 44 percent of sales increased by 7.3 percent or 7.4 percent at constant forex to 128.5 million euros (146.1 million dollars).

North American sales amounted to 15.7 million euros (17.8 million dollars), showing an increase of 10.4 percent or 14.6 percent at constant exchange rates. Sales in other countries increased by 8.3 percent at current and constant exchange compared to the first quarter of 2015.

Sales performance by distribution channel

Sales of the DOS channel, which represent 30 percent of Group revenues, grew 2.5 percent or 3 percent at constant forex, driven by comparable store sales growth recorded on DOS channel of 3.2 percent against 4.8 percent from the first quarter last year. Like for like performance was positive in all countries excluding France and Belgium, following the terrorist attacks and in China, HK and Japan reflecting a low footfall. Like for like performance year to date was up 1.1 percent against 5.4 percent last year.

Sales of the franchising channel, which account for 19 percent of Group revenues, increased 2.2 percent or 2.5 percent at constant forex. Multi-brand stores representing 51 percent, increased 7.1 percent or 7.2 percent at constant forex. As of March 31, 2016, the overall number of Geox shops was 1,149 of which 468 are DOS. During the first quarter of 2016, 14 new Geox Shops were opened and 26 have been closed, in line with the rationalization plan of the DOS network.

The Strategic Plan forecasts a growth in revenues at an average annual rate of 6.5 percent between 2015 to 2018, with turnover expected to reach 1,025-1,100 million euros (1,165-1,251 million dollars) in 2018. The Business Plan also forecasts an improvement in profitability (EBITDA), which is expected to reach approximately 10-11 percent of turnover in 2018.

picture:geox.com

Geox